II 

112TH CONGRESS 

1ST SESSION S. 930 

To amend the Internal Revenue Code of 1986 to provide the same capital 

gains treatment for art and collectibles as for other investment property 

and to provide that a deduction equal to fair market value shall be 

allowed for charitable contributions of literary, musical, artistic, or scholarly compositions created by the donor. 

IN THE SENATE OF THE UNITED STATES 

MAY 10, 2011 

Mr. SCHUMER (for himself and Mr. CRAPO) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

the same capital gains treatment for art and collectibles 

as for other investment property and to provide that 

a deduction equal to fair market value shall be allowed 

for charitable contributions of literary, musical, artistic, 

or scholarly compositions created by the donor. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Art and Collectibles 

5 Capital Gains Tax Treatment Parity Act’’. 


srobinson on DSKHWCL6B1PROD with BILLS
2 

•S 930 IS

1 SEC. 2. CAPITAL GAINS TREATMENT FOR ART AND COL2 LECTIBLES. 

3 (a) IN GENERAL.—Section 1(h) of the Internal Rev4 enue Code of 1986 is amended by striking paragraphs (4) 

5 and (5) and inserting the following new paragraphs: 

6 ‘‘(4) 28-PERCENT RATE GAIN.—For purposes of 

7 this subsection, the term ‘28-percent rate gain’ 

8 means the excess (if any) of— 

9 ‘‘(A) section 1202 gain, over 

10 ‘‘(B) the sum of— 

11 ‘‘(i) the net short-term capital loss, 

12 and 

13 ‘‘(ii) the amount of long-term capital 

14 loss carried under section 1212(b)(1)(B) to 

15 the taxable year. 

16 ‘‘(5) RESERVED.—’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2010. 

20 SEC. 3. CHARITABLE CONTRIBUTIONS OF CERTAIN ITEMS 

21 CREATED BY THE TAXPAYER. 

22 (a) IN GENERAL.—Subsection (e) of section 170 of 

23 the Internal Revenue Code of 1986 is amended by adding 

24 at the end the following new paragraph: 


srobinson on DSKHWCL6B1PROD with BILLS
3 

•S 930 IS

1 ‘‘(8) SPECIAL RULE FOR CERTAIN CONTRIBU2 TIONS OF LITERARY, MUSICAL, ARTISTIC, OR SCHOL3 ARLY COMPOSITIONS.— 

4 ‘‘(A) IN GENERAL.—In the case of a quali5 fied artistic charitable contribution— 

6 ‘‘(i) the amount of such contribution 

7 taken into account under this section shall 

8 be the fair market value of the property 

9 contributed (determined at the time of 

10 such contribution), and 

11 ‘‘(ii) no reduction in the amount of 

12 such contribution shall be made under 

13 paragraph (1). 

14 ‘‘(B) QUALIFIED ARTISTIC CHARITABLE

15 CONTRIBUTION.—For purposes of this para16 graph, the term ‘qualified artistic charitable 

17 contribution’ means a charitable contribution of 

18 any literary, musical, artistic, or scholarly com19 position, or similar property, or the copyright 

20 thereon (or both), but only if— 

21 ‘‘(i) such property was created by the 

22 personal efforts of the taxpayer making 

23 such contribution no less than 18 months 

24 prior to such contribution, 

25 ‘‘(ii) the taxpayer— 


srobinson on DSKHWCL6B1PROD with BILLS
4 

•S 930 IS

1 ‘‘(I) has received a qualified ap2 praisal of the fair market value of 

3 such property in accordance with the 

4 regulations under this section, and 

5 ‘‘(II) attaches to the taxpayer’s 

6 income tax return for the taxable year 

7 in which such contribution was made 

8 a copy of such appraisal, 

9 ‘‘(iii) the donee is an organization de10 scribed in subsection (b)(1)(A), 

11 ‘‘(iv) the use of such property by the 

12 donee is related to the purpose or function 

13 constituting the basis for the donee’s ex14 emption under section 501 (or, in the case 

15 of a governmental unit, to any purpose or 

16 function described under section 501(c)), 

17 ‘‘(v) the taxpayer receives from the 

18 donee a written statement representing 

19 that the donee’s use of the property will be 

20 in accordance with the provisions of clause 

21 (iv), and 

22 ‘‘(vi) the written appraisal referred to 

23 in clause (ii) includes evidence of the ex24 tent (if any) to which property created by 

25 the personal efforts of the taxpayer and of 


srobinson on DSKHWCL6B1PROD with BILLS
5 

•S 930 IS

1 the same type as the donated property is 

2 or has been— 

3 ‘‘(I) owned, maintained, and dis4 played by organizations described in 

5 subsection (b)(1)(A), and 

6 ‘‘(II) sold to or exchanged by 

7 persons other than the taxpayer, 

8 donee, or any related person (as de9 fined in section 465(b)(3)(C)). 

10 ‘‘(C) MAXIMUM DOLLAR LIMITATION; NO

11 CARRYOVER OF INCREASED DEDUCTION.—The 

12 increase in the deduction under this section by 

13 reason of this paragraph for any taxable year— 

14 ‘‘(i) shall not exceed the artistic ad15 justed gross income of the taxpayer for 

16 such taxable year, and 

17 ‘‘(ii) shall not be taken into account in 

18 determining the amount which may be car19 ried from such taxable year under sub20 section (d). 

21 ‘‘(D) ARTISTIC ADJUSTED GROSS IN22 COME.—For purposes of this paragraph, the 

23 term ‘artistic adjusted gross income’ means 

24 that portion of the adjusted gross income of the 

25 taxpayer for the taxable year attributable to— 


srobinson on DSKHWCL6B1PROD with BILLS
6 

•S 930 IS

1 ‘‘(i) income from the sale or use of 

2 property created by the personal efforts of 

3 the taxpayer which is of the same type as 

4 the donated property, and 

5 ‘‘(ii) income from teaching, lecturing, 

6 performing, or similar activity with respect 

7 to property described in clause (i). 

8 ‘‘(E) PARAGRAPH NOT TO APPLY TO CER9 TAIN CONTRIBUTIONS.—Subparagraph (A) shall 

10 not apply to any charitable contribution of any 

11 letter, memorandum, or similar property which 

12 was written, prepared, or produced by or for an 

13 individual while the individual is an officer or 

14 employee of any person (including any Govern15 ment agency or instrumentality) unless such 

16 letter, memorandum, or similar property is en17 tirely personal. 

18 ‘‘(F) COPYRIGHT TREATED AS SEPARATE

19 PROPERTY FOR PARTIAL INTEREST RULE.—In 

20 the case of a qualified artistic charitable con21 tribution, the tangible literary, musical, artistic, 

22 or scholarly composition, or similar property 

23 and the copyright on such work shall be treated 

24 as separate properties for purposes of this para25 graph and subsection (f)(3).’’. 


srobinson on DSKHWCL6B1PROD with BILLS
7 

•S 930 IS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to contributions made after the 

3 date of the enactment of this Act in taxable years ending 

4 after such date. 

Æ 


srobinson on DSKHWCL6B1PROD with BILLS